Calgary office market report

Summary of Q3 office market activity

Downtown

After three years of steady improvement, downtown Calgary’s office market reversed course in 2025. Third-quarter absorption was -159,229 square feet (sf), bringing the year-to-date total to -1,047,042 square feet. The vacancy rate currently sits at 27.2%. Consolidation and relocation within the energy sector remain primary drivers, with large block vacancies entering the market and anticipated upward pressure on sublease space. However, strong energy prices provide cautious optimism, as major tenants continue to offset weakness through long-term leases and renewals. 

Class AA space remains the most resilient, with a vacancy rate of 17.4%, well below other classes. Meanwhile, residential conversion activity expanded with Chevron Plaza and 604 4th Street SW announced, bringing the total of office space removed to approximately 1.9 million sf in various stages of conversion.

Beltline

The Beltline submarket recorded positive absorption of 25,749 sf in the third quarter, reducing the vacancy rate by 1.1 percentage points to 17.0%. Although the City’s incentivization program is geographically limited to the downtown core, the number of residential conversion candidates within the Beltline continues to grow. Alongside office demolitions, the removal of inventory for non-office purposes has been the primary contributor to declining vacancy in this submarket. These trends underscore both the challenges and opportunities currently shaping the Beltline market.

Suburban

The suburban vacancy rate dropped to 15.3% after recording 56,975 sf of positive absorption. The suburbs have continued to perform well, offering the most cost-effective and reliable leasing options for smaller users. The education and healthcare sectors have contributed the most to leasing volume in 2025.